7 Things Realtors Must Know About Real Estate Investors

7 Things Realtors Must Know About Real Estate Investors

What do real estate agents really need to know about investors?

The relationship between real estate agents and investors has gotten a lot better over the last few years. This is mostly due to the fact that investors have been absolutely critical to the survival of Realtors. If it wasn’t for investors, a lot more Realtors than we would like to admit would be out of a job. Of course, not everyone on both sides has buried their perceptions. There is still a lot of misunderstanding. So what do agents need to know about investors? What should more real estate investors be conveying to agents in order to break their preconceptions of these stereotypes?

1. Investors Aren’t All Newbies Trying to Wing it

Not all real estate investors that call on Realtors are brand new and are trying to “wing it”. In fact, with how active many investors are, they often have more experience than most Realtors. Even newer investors have invested serious amounts of time and money in specifically learning about real estate. Way more time and money than it takes to get a real estate license. So don’t automatically dismiss every offer or call from a real estate investor as being a time waster. Besides, everyone has to start somewhere. Who knows where that person will be in two years, and how many deals they’ll be doing.

2. Investors Don’t have to be Competitors

A lot of the animosity between investors and agents comes from fear, or even competition. If Realtors aren’t working with investors, they may view them as competitors. They are knocking at, mailing to, and are calling the very same houses and prospective sellers. Realtors can be at an extreme disadvantage: they are charging and asking for money for a service, versus investors that are offering a guarantee, rapid sale, and to put money in their hands. On the other hand, investors are offering properties for sale and for rent, and are aggressively marketing to get more buyers on their lists. It doesn’t have to be that way. If more Realtors would be proactively trying to serve investors well, there wouldn’t be any need for butting heads. If these two sides don’t collaborate, investors may be a bigger threat to the existence of many agents than any mobile app or website.

3. Some Investors are Really Serious

A lot of investors do come into the game with unrealistic expectations. Those that didn’t seriously invest in their real estate education are going to close a lot of doors with absurd inquires and ridiculously low, low ball offers. Then again, there are new real estate agents that don’t know what they are doing and sabotage clients with wild asking prices and demands. While serious investors want viable deals, they have normally done their math, know the local market, and have legit buying criteria. If they are qualified, agents should be more than happy to plug that data in and create some automated searches and alerts.

4. You Don’t Know How Much Business You Are Missing Out On

Regular home buyers, renters, and sellers are okay, but they are normally low ROI, one hit wonders. Data proves that most clients never remember the name of their Realtor. However, land a single investor as a client, and they may bring you 10 deals a month, or a 100 deals a year. They probably aren’t going to hand you that level of business from the start; not until you prove yourself that is. They may even be ramping up in your market themselves. That said, many investors are pursuing this kind of business. Many Realtors don’t do 10 deals a year from all their clients. But investors completely change what is possible for Realtors. They normally hang out with a lot of other investors too. They are always trading referrals. Imagine having 10 investor clients that gave you 10 deals a month on auto pilot. What would that do for you?

5. They Can Boost Your Net Earnings

Not only can serious real estate investors bring Realtors a ton of business, but they can dramatically lift their net incomes too. Realtors spend most of their money marketing for deals. What if you didn’t have to spend that money anymore? That’s more cash in the bank. Now add to this the fact that Realtors are going to get to double dip buy selling the property to the investor, and helping them market and resell it.

6. These are Easy Deals

Yes, investors may be adamant about buying deals that are profitable, but wouldn’t you be too? Truth be told, experienced investors get the business. That makes them a lot easier to work with. They’ll often pick up a lot of your work, and will have assistants that help too. That means more net income, and less hassle along the way.

7. Leverage and Creative Financing is Smart

Using high loan-to-value loans and creative financing is one of many Realtors’ pet peeves. It’s a smart use of money and a financial tool. Give it a chance.

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